May 17, 2021

BTC Funding Rate Turns Sharply Negative

As of this morning following the market selloff BTC-perpetual funding rate, aka basis, turned sharpy negative after trading in green for the last 1/2 year. From the chart below it looks like breaking 44K level triggered the decline, and this can signify a major shift in investor sentiment. This can also possibly be an end to both general crypto bull market, and also dampen DeFi projects since their performance correlates to volatility and funding rates. 

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